And why would they want to hack into TVs? Looking at people's living rooms and half-naked asses all day long is not going to bring about much except some poor NSA guy's burnout.
You still seem to understand how its supposed to work. I think mostly according to Snowdon.
1) The NSA grabs EVERYTHING it can gets its hand on. Raw data, encrypted and unencrypted data packets, meta data.
2) Then this huge mass of data gets filtered through simple automated filters, and gets tagged accordingly. One of those filters is a specific list of interesting people and their contact meta data. These filters reduce the amount of data tremendously.
2a) The composition of these lists is what caused a huge uproar for instance here in Germany, when, amongst others, Angela Merkel was identified as one of the targets. The wording here is that the "The NSA is spying on Merkel", but that's a lot simplified for anyone who gets step 1. The NSA is SPYING on everyone, in the sense that the data gets copied to NSA internal servers. It's only that it makes data available to access BY HUMAN EYES after it has been cleared by the tagging. But they (or others) could, ostensibly, access the raw data, which contains data on whatever you can think off. But they're (a) not allowed to; and (b) it's a HUGE pile of data that either requires a LOT of work or very clever programming to make sense out of.
3) The tagged data gets saved, and can be searched at least for the pre-selected key name and keyword lists. Only these searches are human based. A selection of non-allowed targets (like US citizens) only happens at THIS level within the search program; the rest of the data is still there. The data not tagged during step 2 gets deleted at some point -- 30 days? 90? Something like that. What gets tagged is kept longer, perhaps indefinitely. I suspect depending on some weighting of each specific keyword or name.
4) The search program and access to the database of tagged data is pretty wildly available to friendly services, both foreign and domestic, though restrictions within the search program exist for each entity that has it. I know, for instance, the German BND was given access, as thank you for delivering a lot of data that US services are not legally allowed to get otherwise.
4) Encryption is pretty much an automatic tag.